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Herbalife has responded to hedge fund manager Bill Ackman’s epic three-hour long presentation of his short thesis for the company calling it a “malicious attack.”Ackman, who has an “enormous” short position on Herbalife, called the company a pyramid scheme. He also has a price target of $0 and believes the company will fail.
The following is a statement from Herbalife in response to the Ackman presentation. Today’s presentation was a malicious attack on Herbalife’s business model based largely on outdated, distorted and inaccurate information. Herbalife operates with the highest ethical and quality standards, and our management and our board are constantly reviewing our business practices and products. Herbalife also hires independent, outside experts to ensure our operations are in full compliance with laws and regulations. Herbalife is not an illegal pyramid scheme.
Herbalife is a multi-level marketing company that sells nutritional and weight loss products. The stock has dived since Ackman confirmed his short on Wednesday.